The International Monetary Fund has approved a $139 million disbursement for El Salvador. Despite this financial support, the agency continues to urge the government to limit its involvement in Bitcoin-related activities and scale back its cryptocurrency strategy.
The IMF noted that El Salvador's economic performance has exceeded expectations, citing improvements in security and investor confidence. However, the organization highlighted that certain performance criteria regarding Bitcoin accumulation were not met, leading to granted waivers based on corrective measures.
The IMF stated that no further accumulation of Bitcoin is expected beyond documented donations. This follows a broader $1.4 billion loan agreement reached between the country and the agency in December, which included requests to reduce state participation in the Bitcoin sector.
El Salvador adopted Bitcoin as legal tender in 2021, launching a state wallet to encourage usage. While President Nayib Bukele previously announced a plan to purchase one Bitcoin daily, the IMF reported in September that the country was relying on private donations rather than public funds for its holdings.
